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How does shared VRAM work compared to a Video Card?

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Okay, being new to using PC hardware I was wondering if someone could explain to me how shared VRAM compares to a video card's core/memory speed. I have a X300SE 128MB DDR with a core speed of 325 and a memory speed of 400 but compared to the 256MB shared PC3200(400MHz) out of 2GB I don't notice much of a difference in video crunching for games or otherwise. I just got a X1600XT yesterday but don't see it helping much except for games which I don't play often so I am going to send it back.

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